Paying off default account

sian_d18

Hi, I have a default account on my credit report, it was a catalogue loan I took out 2 years ago, I am finding it hard to get things like phone contracts, sim only plans etc.

The balance is at £268, I want to pay if off in full but if I do that will it clear from my credit report or will it still be there? Is there any way I can get it completely removed?

Thank you,
Sian

Willing2Learn

Hi Sian,

The account will be automatically removed from your credit files after six years from the date of default. There is no way to get it removed before this date.

Once the account has recorded as fully settled, then your file will look better, when viewed by potential lenders.

NutWorld

sian_d18 wrote: »

Hi, I have a default account on my credit report, it was a catalogue loan I took out 2 years ago, I am finding it hard to get things like phone contracts, sim only plans etc.

The balance is at £268, I want to pay if off in full but if I do that will it clear from my credit report or will it still be there? Is there any way I can get it completely removed?

Thank you,
Sian

Your credit report will show how you have handled credit agreement and where you lived over the last 6 years.

A clear/empty credit report (i.e. one with no records on it) is often worse than poor credit report, as it means the creditor is dealing with an entirely unknown entity and questions would be asked as to why this person applying for credit is not even registered on the electoral role.
It could indicate, for example, a forged credit application, or one made by someone who is deliberately attempting to hide their past and not be contactable.
Would you lend money to someone you knew nothing about, nor where they could be contacted? Or would you prefer to lend to somone you can see their credit history including that they have finally paid off in full a loan they had?

CakeCrusader

I'm assuming from your other thread that this has been in constant default for a while and has now been passed to debt collectors? You need to pay it. Lenders will look at your credit history and will probably reject your application. The effects will lessen over time, just make sure you're on the electoral register and that you keep on top of your finances.